NAM outsources international equity funds
National Asset Management (NAM) has chosen Sanford C Bernstein and Vanguard Investments Australia to manage its $900 million international equity funds.
After a three month decision process, Sanford Bernstein will manage the active component while Vanguard will look after the indexed component in the fee based deal.
National Asset Managment general manager Stephen Hiscock says NAM's brief in choosing external managers was to create a world class value manager.
"Bernstein is regarded as probably the best value manager globally, all they do is value investing. With $150 billion in funds under management they are reasonably large. Likewise Vanguard's specialty is purely as an index manager."
Hiscock says the combination allows NAM to offer a low risk portfolio on its international equities.
The two US based groups will equally manage the portfolio and the Australian equity team will also have a link with Bernstein for global research.
"It will be roughly 50-50 management with a tracking error of 2% internationally," Hissock says.
NAM also plans to outsource its Asian equity fund and are in the process of organising final interviews with managers at the moment.
"We are hopeful for a decision before Christmas but it depends on managers being available for the final interview," says Hiscock.
He says the group concentrated on getting the management of the International fund perfect before working on the outsourcing of the Asian Equity Fund, which currently has $40 million in funds.
NAM will continue to focus its own management on domestic equities, debt markets, unlisted assets and diversified funds with Hiscock saying the group will invest strongly in those to grow further business.
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